China’s Purchasing Managers’ Index fell in October for the first time in three months, adding to speculation that Beijing will soon loosen policies aimed at cooling inflation, Bloomberg reported. The China Federation of Logistics and Purchasing said in a statement Tuesday that its index, one of two widely accepted measures of manufacturing activity, fell to 50.4 from 51.2 in September. Chinese Premier Wen Jiabao said last week that economic policies may be fine-tuned as needed, prompting analysts to speculate that tight restrictions on liquidity could be slightly relaxed in response to a slowdown in European economies that is dragging on Chinese exporters. A reading above 50 indicates manufacturing activity is expanding. The index, which is based on a survey of purchasing managers in more than 820 companies, has not fallen below 50 since February 2009.